Jindal Stainless announces robust FY24 financial results amidst market challenges

Jindal Stainless Limited (JSL), a key player in the stainless steel industry, unveiled its financial outcomes for the fiscal year and quarter ending March 31, 2024, showing significant gains and strategic expansion plans.

FY24 Standout Performances:

– Sales Volume and Revenue: JSL reported a substantial increase in sales volume, reaching 2,174,610 tonnes, up by 23% year-over-year (YoY). The standalone net revenue climbed to INR 38,356 crore, marking a 9% increase YoY.

– Profit Metrics: The earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 13% rise to INR 4,036 crore. Profit after tax (PAT) notably surged by 26% YoY to INR 2,531 crore.

Consolidated Results Highlight Growth:

– The consolidated net revenue also rose to INR 38,562 crore, with an 8% increase YoY.

– The consolidated EBITDA and PAT jumped by 31% and 29% YoY, reaching INR 4,704 crore and INR 2,693 crore, respectively.

Jindal Stainless Limited unveils impressive FY24 financial performance and strategic expansion plans.

Challenges in Q4FY24:

Despite the yearly growth, the final quarter presented challenges:

– EBITDA and PAT Declines: Q4 saw a 25% drop in EBITDA and a 28% decline in PAT on a standalone basis, primarily due to negative inventory valuation affected by falling nickel prices and weakened export markets.

Strategic Initiatives and Market Impact:

Amidst market pressures, JSL announced ambitious acquisition and expansion plans worth approximately INR 5,400 crore to increase its melting and downstream capacities. This includes:

– A joint venture for a 1.2 million tonnes per annum (MTPA) stainless steel melt shop in Indonesia.

– Expansion in downstream capacity at Jajpur, Odisha.

– Acquisition of a 54% equity stake in Chromeni Steels at Mundra, Gujarat.

Board’s Dividend Decision:

The Board recommended a final dividend payment of INR 2 per share for FY24, subject to shareholder approval, raising the total dividend payment to 150% per equity share.

Director’s Insights:

Abhyuday Jindal, Managing Director of Jindal Stainless, expressed optimism about the company’s trajectory, emphasizing the role of operational efficiency, digitalization, and customer satisfaction in driving growth amidst challenging market conditions.

Market Dynamics and Future Outlook:

The persistent surge in imports from China poses a threat to the domestic market, highlighting the need for fair competition and innovation. Despite these challenges, JSL’s expansion and strategic investments are set to bolster its market position and enhance its offerings in both domestic and international markets.

Jindal Stainless’s commitment to growth and sustainability, alongside its strategic initiatives, positions it well to capitalize on the rising demand and navigate the complexities of the global steel market. The company’s focus on enhancing operational efficiencies and expanding its product offerings promises to strengthen its market leadership and foster long-term success.